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ARTICLE · 11 DECEMBER 2018

Non-Electronic Services By E-Services Providers: VAT Payment Procedure

This is directly prescribed by article 174.2 of the RTC.

RussiaTax

Dentons' tax experts are keeping you posted on the latest news regarding payment of VAT on electronically supplied services ("e-services"). Today, we would like to elaborate on the topic in the light of article 161 of Russian Tax Code ("RTC"). This provision states that Russian companies should withhold VAT (act as a tax agent in the terms of the RTC) for goods/services supplied from Russian territory only if the foreign supplier does not have Russian tax registration.

At the same time, clause 4.6 of article 83 of the RTC states that foreign e-services suppliers should be registered as taxpayers. In this case, the foreign company will obviously have to account for VAT on e-services itself. This is directly prescribed by article 174.2 of the RTC. But who should account for the non-electronic services often provided by a company that supplies e-services?

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